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Dell Sees Sales Growth, PC Refresh

Dell is forecasting solid revenue growth this fiscal year, driven by the PC refresh cycle.

ROUND ROCK, Texas (

TheStreet

) --

DELL

(DELL) - Get Report

is forecasting solid revenue growth this fiscal year, driven by the PC refresh cycle and the company's push further into the enterprise space.

In a statement released after Wednesday's market close, Dell predicted that fiscal 2011 revenue will be between 14% and 19% higher than the prior year. This would equal sales between $60.31 billion and $62.95 billion.

Excluding items, the company expects its operating income to rise between 18% and 23% compared to fiscal 2010. This would mean 2011 operating income between $3.51 billion and $3.66 billion. Cash flow from operations will be higher than net income for the current year, it added.

Dell provided the outlook ahead of its annual analyst meeting tomorrow. The company's bullishness could bode well for the rest of the tech sector. PC sales, for example, are seen as a key indicator of tech spending.

"An overdue client refresh among commercial and public customers is underway and we anticipate it will continue," said Dell CFO Brian Gladden, in a statement.

In its

recent first-quarter results,

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Dell's profit jumped 52% compared to the same period last year. The company's gross margins, however, were squeezed to 16.9% from 17.6% in the prior year's quarter, which appeared to spook investors.

Earlier this month the computer maker also

revised its first-quarter results to account for a possible settlement

to its long-running

SEC

fraud investigation.

The company's shares were unchanged, at $13.82, in extended trading on Wednesday.

-- Reported by James Rogers in New York

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